The official responsible for planning at Tory Westminster Council has said he and his colleagues are "very up" for a statue of Lady Thatcher in the borough, and suggested putting it in Parliament Square or outside of the Ministry of Defence.

The indication that the council would give planning approval comes after a growing number of calls for Lady Thatcher to be immortalised.

London Mayor Boris Johnson, Defence Secretary Philip Hammond, former Cabinet minister Lord Tebbit, Conservative Peer Lord Ashcroft and a number of Falklands veterans have all said she should be publicly honoured in the heart of the capital.

Prime Minister David Cameron has indicated that he welcomes the suggestions, which will be considered in due course.

Deputy Prime Minister Nick Clegg has also refused to dismiss the plans, saying on his LBC call in show: "Of course she is a polarising figure, she is a controversial figure, I'm not going to begrudge her supporters the right to advocate there should be some statue."

Westminster City Council Deputy Leader, Cllr Robert Davis, said the council would "look favourably" on anyone coming forward with a genuine proposal.

“I think that the council would be very up for it," Cllr Davis said.

“We would have to consider that planning aspects, but it is really a matter of where it would be and what it would look like.

“The principle is something that the majority of the council would approve of.”

The next step would be for individuals to form an organising committee and then find donors, and a sculptor to create the memorial to the Iron Lady.

Cllr Davis echoed Mr Johnson’s comments that the most appropriate place for any statue would need researching, although initial suggestions included the empty plinth in Trafalgar Square.

He said: “I actually think that Parliament Square may be more appropriate, or maybe outside the Minsitry of Defence, there is room for more statues there. Let’s look at all the options, let’s find out what it is going to look like.”

The Chair of Planning Applications Sub-Committee explained that once a committee had finalised their plans then an application would need to be submitted and decided upon by the council, who would also need to be provided with a “dowry” to maintain the artwork.

Cllr Davis added: “I think that Lady Thatcher is absolutely deserving of a statue. She was given the freedom of the City of Westminster in 1991, it is a very rare honour. She is one of our honorary freeman, so we obviously think very highly of her."

The only other Prime Minister to be granted the honour was Winston Churchill.

Lord Ashcroft, the Conservative peer, businessman and philanthropist, has said: “Exceptional people deserve exceptional recognition. Baroness Thatcher made an extraordinary contribution to British politics and British life.

“It is therefore appropriate for her to receive an outstanding public acknowledgement of the nation’s gratitude for all that she has done."

He joined MR Hammond, Commander John Muxworthy, a Lt Commander on the SS Canberra during the Falklands conflict, and Lord Tebbit in suggesting that Trafalgar Square would be a fitting home for a memorial. .

However, the space is managed by the Greater London Authority, and a spokesperson said that it is “not suitable” as the arts programme already in place is set to continue for several years.

The Mayor has vowed that his “office will do all it can to help find a suitable high profile site for a statue that reflects the indelible mark she has left in the service of our country”.

Lord Ashcroft’s second suggestion of a memorial in Westminster echoes that of UKIP leader Nigel Farage, who said that it would ““show the outside world that we view her as an important political figure”.

Mr Hammond has agreed that it is “very appropriate to have a memorial” in the centre of London.